Treaty signed on April 10 in Budapest; effective July 14 of the same year.

The Kingdom of Hungary and the Republic of Austria, the Governments of which have mutually declared that their policy is directed towards the promotion of peace, and that, in order to avoid anything which might impede the attainment of this object, they have recognised the necessity of keeping in close touch in regard to any questions which may arise affecting both countries, being animated by a desire to contribute towards the maintenance and safeguarding of peace in Central Europe and to establish the principle of compulsory arbitration in their mutual relations,

Have resolved to conclude an agreement for this purpose and have appointed as their Plenipotentiaries:

For His Highness the Regent of the Kingdom of Hungary:

Councillor Geza Daruváry von Daruvár, Royal Hungarian Minister of Justice, Acting Head of the Royal Hungarian Ministry of Foreign Affairs, and

For the Federal President of the Republic of Austria:

M. Franz Calice, Envoy Extraordinary, and Minister Plenipotentiary,

Who, having communicated their full powers found in good and due form, have agreed upon the following provisions:

ARTICLE 1.

The High Contracting Parties undertake that, in the event of any dispute arising between them in future, they will first of all endeavour to reach an agreement by means of a friendly understanding.

If, however, it should prove impossible in this way to settle the dispute, no matter what its nature may be, it shall be submitted, after an agreement has been reached by the two Parties, to an arbitrator or arbitrators specially appointed for the purpose.

As a rule, any arbitration courts which may be set up from time to time shall sit alternately in Vienna and Budapest.

The two Governments may, if they consider it expedient, refer the dispute to the Permanent Court of International Justice.

The High Contracting Parties shall not apply to a court of arbitration until they have drawn up a special agreement in which the facts of the dispute and the points to be decided are accurately stated.

ARTICLE 2.

The foregoing provisions shall also apply to disputes arising out of circumstances which occurred before the conclusion of this Agreement.

ARTICLE 3.

The present Agreement shall be ratified and the instruments of ratification shall be exchanged as soon as possible at Budapest. The Agreement shall enter into force on the fifteenth day after the exchange of the ratifications.

The text of the agreement shall be communicated to the Secretariat of the League of Nations.

ARTICLE 4.

Should one of the High Contracting Parties denounce this Agreement, the denunciation shall not come into force until one year after it has been communicated in writing to the other Contracting Party.

In faith whereof the Plenipotentiaries of both Parties have signed this Agreement and have thereto affixed their seals.

Done in duplicate at Budapest on April 10, 1923, in Hungarian and German texts authentic.